F&O: VIX shoots up 4.24%, Nifty trading range at 11,800-12,200
Nifty has to continue to hold above 11,850 level to witness an up-move towards 12,035.
Nifty50 on managed to surpass Thursday’s high and extended the gains towards the 12,034 mark in the first half of Friday’s session. However it failed to hold the gains above 12,000 level and drifted sharply towards the 11,888 level. It formed a bearish candle on the daily scale and a Doji on the weekly scale. Multiple supports are seen at lower zones, while selling pressure is seen near 12,000 and 12,050 levels.
Now, Nifty has to continue to hold above 11,850 level to witness an up-move towards 12,035 and then 12,103 levels, while on the downside supports are seen in the 11,780 – 11,750 zone.
In monthly options, maximum Put open interest was seen at 11,600 followed by 11,500 levels while maximum Call OI was at 12,000 followed by 12,300 strike. There was Put writing at 11,900 and 11,700 levels while Call writing was seen at 12,300, followed by 12,200 levels. Options data suggested a broader trading range between 11,800 and 12,200 levels.
India VIX moved up 4.24% to 15.85 level.
Bank Nifty relatively outperformed the benchmark index and extended its gains towards the 31,100 mark. It gained nearly 400 points on an intraday basis, but failed to hold the gains at higher levels and closed near the 30,700 mark.
The index formed a Shooting Star candle on the daily scale and a Bullish Candle on the weekly scale. Supports are gradually shifting higher and now it has to hold above 30,500 zones to witness an up-move towards 31,000 and then 31,250 levels, while on the downside supports are seen at 30,250 and then 30,000 levels.
Nifty futures closed negative at 11,940 with a loss of 0.90%. Long buildup was seen in IGL, MGL, Kotak Bank and IndusInd Bank while shorts were seen in Siemens, GAIL, BPCL and Bank of Baroda.
(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)